Animal Husbandry Infrastructure Development Fund (AHIDF)
What is animal husbandry?
India, that is Bharat, has always believed in her indigenous/ native thought process of the world being a place for all living and non-livings things and not just a place created for humans to stay and we tolerate the other beings around us and that they are there for human consumption or use.
Animal husbandry taking care of animals, but on a larger scale. It means treating animals as stock in trade and growing them, maintaining them for earning money from them. This is done when they are sold for their meat or for their produce like milk, wool and/or eggs or are reared for breeding and reproduction or for the purpose of using as transportation.
Therefore, animal husbandry is divided into the following categories:
1. Shelter and feeding: To look after the livestock (cows, sheep, buffaloes, goats, chickens, horses etc.) by providing them with appropriate food, water, and shelter.
2. Breeding: To raise livestock for breeding and reproduction. For eg. a bull for breeding quality heifers or another bull.
3. Healthcare: To make sure that the medical needs of the livestock with proper vaccinations and treatment are addressed. Also, the livestock are free from diseases that can be transferred to humans. This has become more of a concern since the outbreak of SARS and Covid 19 viruses.
4. Manure: Animal waste, especially from livestock that are vegetarian, is used as fertiliser and this fertiliser is a natural resource called manure that is the best form of fertiliser yielding high quality crops without any of the side effects of chemically made fertilisers.
Animal Husbandry Infrastructure Development Fund (AHIDF) governing body
Ministry that looks after animal Husbandry and Animal Husbandry Infrastructure Development Fund (AHIDF) were created in June 2019. A new ministry by the name of Ministry of Fisheries, Animal Husbandry & Dairying has been created. Under this ministry the department of Animal Husbandry and Dairying (AH&D) is one of the departments
This department looks after matters relating to
- livestock production,
- livestock preservation,
- protection of livestock from diseases
- improvement of livestock and
- dairy development
This department also acts as an advisor for framing policies and programs, both for the Centre and the States. Its core areas of advisory and programs are:
- To help, advise and organise programs relating to required infrastructure in States/ Union Territories for improving animal productivity.
- To help, advise and organise programs relating to preservation and protection of livestock through provision of health care.
- To help, advise and organise programs relating to strengthening of livestock farms for development of superior gene class for distribution to states.
Schemes under this Ministry
Under this ministry various schemes have been launched by the Ministry some of them being mentioned herein:
- Rashtriya Gokul Mission (RGM)
- National Livestock Mission (NLM)
- National Programme For Dairy Development (NPDD)
- National Animal Disease Control Programme (NADCP)
- Dairy Infrastructure Development Fund (DIDF)
- Animal Husbandry Infrastructure Development Fund (AHIDF)
In this article we are discussing about the Animal Husbandry Infrastructure Development Fund (AHIDF)
How does this Animal Husbandry Infrastructure Development Fund (AHIDF) work:
The main Bank through which the fund will operate is Small Industries Development Bank of India - SIDBI. The allocated budget is Rs.15000 Crore for a period of three years from the fy 2020-21.
Agency Overseeing Disbursals of Animal Husbandry Infrastructure Development Fund (AHIDF):
Project Management Agency (PMA)
Project Approval Committee (PAC)
Project Sanctioning Committee (PSC)
Movement of proposals
- The eligible entity (EE) (defined later on in the article) has to submit its proposal (either for Loan or for Loan and interest subsidy (subvention)) through the website/portal : https://portal.udyamimitra.in/
This portal is developed and run by SIDBI. If SIDBI is satisfied that the form has been duly filled and all attachment and documents submitted with the online form, it then forwards it to the Department of AH & D (Animal Husbandry and Dairying). Alongwith sending its recommendation to the department, SIDBI is also supposed to send its copy of loan sanction to Project Sanctioning Committee/ Project Approval Committee prior to such projects being considered for interest subsidy/subvention
- Project Management Agency (PMA) is an agency under this department. After SIDBI has approved that the form is complete in all respects, the Agency scrutinises, evaluates and appraises the proposal and if found having strength, all the proposals are forwarded to the Project Approval Committee (PAC).
- If the proposal is valued till 50 crores, then it may be approved by the Project Approval Committee (PAC). If the proposals are valued upward of Rs.50 Crores, then the Project Approval Committee (PAC) has to send them to the Project Sanctioning Committee (PSC), after checking and appraising the projects with their recommendations.
Eligible entities under the Animal Husbandry Infrastructure Development Fund (AHIDF)
A public company is not eligible to apply for this Fund. Loan and interest subsidy will be available to the following entities:
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Farmer Producer Organisation (FPO)
Farmers who are covered under the area of operation ( as explained later) of this fund, can come together to make a producer company under the Companies Act, 2013. They can then easily apply for the loan and interest subsidy under Animal Husbandry Infrastructure Development Fund. Get in touch with our Experts by booking a FREE EXPERT CONSULTATION for incorporating a producer company.
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Private companies
A private company registered/ incorporated under the Companies Act, 2013 and having in its object clause the area of operation ( as explained later) of this fund, it can apply for the loan and interest subsidy under Animal Husbandry Infrastructure Development Fund. Get in touch with our Experts by booking a FREE EXPERT CONSULTATION for incorporating a private company or visit our website www.seedup.in
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Section 8 companies
A section 8 company is like a private company and incorporated / registered under the Companies Act, 2013. But unlike a private company it cannot distribute its profits to its members. If the object clause of the Section 8 company is as per the area of operation ( as explained later) of this fund, it can apply for the loan and interest subsidy under Animal Husbandry Infrastructure Development Fund. Get in touch with our Experts by booking a FREE EXPERT CONSULTATION for incorporating a private company or visit our website www.seedup.in
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Individual entrepreneurs
Sole proprietors, Partnership firms, Limited Liability Partnerships (LLP) may also be eligible under this heading to apply for loan and/or interest subsidy under this Fund. If the business of the sole proprietor, or the partnership firm or the object clause of the Limited Liability Partnerships (LLP) is as per the area of operation ( as explained later) of this fund, it can apply for the loan and interest subsidy under Animal Husbandry Infrastructure Development Fund. Get in touch with our Experts by booking a FREE EXPERT CONSULTATION for incorporating a sole proprietor, or a partnership firm or a Limited Liability Partnerships (LLP)
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Micro Small and Medium Enterprises
If any entity falls within the ambit of MSME (Micro Small or Medium Enterprise), do visit our website to know more about MSME by clicking here, then these entities too can apply for the loan and/or interest subsidy under this Fund. A company, an LLP, a firm , all are eligible to be registered as an MSME if they meet the criteria for being an MSME. Get in touch with our Experts by booking a FREE EXPERT CONSULTATION for MSME Registration
Area of operation/ activities covered under the Animal Husbandry Infrastructure Development Fund (AHIDF)
The following activities should be undertaken by the eligible entities to be able to apply for loan and/or interest subsidy under Animal Husbandry Infrastructure Development Fund (AHIDF). The producer company, private company, LLP should incorporate the following activities under its object clause. The partnership firm should have it stated in its partnership agreement. A sole proprietorship should have a trade licence for this kind of activity.
Dairy Processing:
Under the Dairy Processing infrastructure the eligible entity can avail the following benefits by establishing the following:
Establishing new units and/or improving the existing dairy processing units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.
Value added dairy product manufacturing:
The eligible entity can also avail loan for establishment of new units and strengthening of existing manufacturing units for value addition of the following milk products:
Ice Cream unit(s)
Cheese manufacturing unit(s)
Ultra High Temperature (UHT) Milk processing unit(s) with tetra packaging facilities
Flavoured Milk manufacturing unit(s)
Milk Powder manufacturing unit(s)
Whey powder manufacturing unit(s)
Any other milk products and value addition manufacturing unit(s)
Meat processing and Value addition of facilities:
Establishment of a new meat processing unit and strengthening of existing meat processing facilities for sheep/goat/ poultry/pig/buffalo in rural, semi-urban and urban areas.
Integrated large scale meat processing facilities/ plant/ unit.
Value Added Products:
Establishing new or improving existing facilities for meat items / meat products. These facilities could either be an integral part of meat processing units or Standalone meat value addition units.
The project cost of each meat processing plant should compulsorily include
- cost of establishing and maintaining a proper Effluent Treatment Plant (ETP),
- an efficient Meat Microbiological Testing Laboratory,
- installation of a proper Residue Testing laboratory,
- to elaborate properly on the cold storage systems for keeping the offals, skin/ hide
- processing areas and
- preserving and refrigerating facilities for keeping the cold products and value added products for at least a period of 24 hours.
Animal Feed manufacturing
The eligible entity can also avail benefit for establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories:
Establishing small, Medium and Large Animal Feed Plants
Total Mixed Ration Block Making Unit
By pass protein unit
Mineral Mixture Plant
Enrich Silage making unit
Animal Feed Testing Laboratory
Large feed plant or the eligible entity can avail benefit for establishment of Animal Feed Testing Laboratory in the existing Feed Plant to ensure quality feed.
Financial Mechanics of the Fund
How much Loan can be availed under Animal Husbandry Infrastructure Development Fund (AHIDF)?
An eligible entity can apply for upto 90% of the total project cost to eligible beneficiaries out of the eligible entities. All eligible entities are not eligible for 90% quantum.
Like, a micro or small enterprise may get in the range of 85-90%. The rest 10-15% is self funding or in the language of the fund 'beneficiary funding’ (beneficiary being the eligible entity getting the loan from the Fund0
Other medium size enterprises may get upto 75% of the total project cost. The rest of the funds i.e. 25% has to be contributed by the beneficiary eligible entity.
If there is a cost escalation and the eligible entity applies within 2 years from the first sanction of the loan under this fund, the eligible entity may get the additional funds approved.
What is the Interest rate and Interest Subsidy (subvention)?
Interest subsidy/ subvention:
3% to all eligible entities (thus, the interest rate will be subsidised by the fund to the maximum limit of 3%. Thus of the interest rate in 7.5%, then with interest subsidy, the eligible entity has to pay only 4.5% effective interest rate)
Rate of Interest:
For MSME based eligible entities: The interest rate will be fixed by the scheduled banks and cannot exceed 200 bp (basis points) + EBLR (External Benchmark based Lending Rate).
For other than MSME type eligible entities: It can be the commercial rate of interest.
What is the Repayment schedule:
The entire loan disbursed under Animal Husbandry Infrastructure Development Fund (AHIDF) has to be repaid within 8 years with maybe an extension/moratorium period of 2 years. Thus, the total term of the loan cannot exceed 10 years.
If after getting the loan, the eligible entity defaults in spying either the loan emi or the interest payment, then the interest subsidy will be withdrawn.
Required Pre-Clearances to be eligible under Animal Husbandry Infrastructure Development Fund (AHIDF)
The eligible entity should have the following pre clearances from the local authorities. The Animal Husbandry Infrastructure Development Fund (AHIDF) authorities will not help in obtaining these clearances. But the Fund will ask the State government to create a single window clearance system.
- NOC (no objection certificate) from the Land Authority on the leasehold or ownership of the land.
- Certificates from the State pollution Control Board specifically Consent to establish and consent to operate
- Water and Air Acts
- Trade Licences
- Any other clearances / registrations like Professional tax etc to be taken from State Government
- Registration with FSSAI. Click here for registration with FSSAI
- State Electricity Board
- MSME Registration (only for those entities that fall within the ambit of the MSME guidelines)
- Incorporation under Companies Act (only for companies)
- Registration under Labour Act/ EPF Act.
- Statutory clearances, other than the listed ones above, if required from the respective state government.
Information required for Preparing the detailed Proposal/ Project Report
The project report to be submitted to Animal Husbandry Infrastructure Development Fund (AHIDF) should include the following details:
- Process for establishing a unit for milk/ meat /animal feed / packaging unit and the methods to be adopted for marketing of the product..
- A road map for:
future marketing strategy
employment generation and opportunities for the local population,
raw materials procurement and
- Any other information related to the project.
- Premise details/ site details including site plan
- Required engineering and socio-economic investigations and surveys,
- Planning and designing of the facilities and
- Model studies / reports wherever required.
- Detailed Project including piecemeal cost break up, total costs, recurring costs, projected income etc., project viability
- Supporting documents
- Proof of Address,
- Copy of PAN / TAN / Aadhaar
- MSME registration certificate (if any),
- Proof of premises (ownership or lease, conversion),
- Owner/ Director/ Partner/ Designated Partner details- education certificates, copies of training certificate, income proof, bank statement etc.
- List of Machinery and Equipment as will be installed
- Lay out plan (both Civil and Machinery) of the facility certified by the registered architect.
- All statutory clearances/ registrations eg.Trade Licence, consent of Establishment, Consent to Operate from State Pollution Control Board, FSSAI License
